Business segment result

Loans to clients and assets under management in the Retail & Corporate Banking segment posted gratifying growth. The business volume rose by 4.3 percent to CHF 18.1 billion (31.12.2015: CHF 17.4 billion). Thanks to net new money inflows, assets under management increased to CHF 8.4 billion (31.12.2015: CHF 8.0 billion). Loans to clients climbed by 3.7 percent to CHF 9.7 billion (31.12.2015: CHF 9.3 billion).

Net new money inflows stood at CHF 334 million (2015: inflow of CHF 199 million). Once again inflows were registered from private and corporate clients in the domestic markets of Switzerland and Liechtenstein. Interest differential business, which comprises the largest part of earnings in private and corporate banking, decreased. The interest environment with record low interest rates and even negative interest led to a substantial fall in contribution margins in deposits business. In contrast, earnings in lending business expanded. Adjustments for credit loss expense were stabilised at a low level. Fee and commission income benefitted from the positive development of the LLB Group’s performance-related fee models. On account of lower internal settlements, operating expenses decreased by 6.2 percent.

This resulted in a slight reduction in the segment profit before tax of 1.8 percent to CHF 41.8 million (2015: CHF 42.6 million).